The bullish breakout of Ethereum be blocklisted by Bearish Death Cross – Here is how to fix it

Ethereum (ETH) has increased by nearly 3% in the past 24 hours as sellers paused trading yesterday and may be gradually acquiring this token as the price has fallen below $1,900 once again. Last week was quite a negative week for leading altcoins as this currency suffered a loss of 9.7% as the cryptocurrency sell-off continued. The chart shared by CryptoQuant provides detailed information about the sentiment of speculators. It seems that the sellers of Ethereum continue to dominate price movements, as evidenced by the behavior of the funding rate – a measure of the fees that traders must pay to keep their positions open.

When the difference between the funding rates that traders have to pay is positive, it indicates that market sentiment is optimistic because the volume of long positions existing exceeds the volume of short positions. However, if market sentiment falls, this difference will gradually narrow. Analysts at CryptoQuant have measured the simple moving average of funding rates over the past 50 and 200 days and identified a "death cross." This means that the short-term moving average has crossed below the long-term moving average. This reflects a trend reversal and confirms the bearish outlook. Ethereum bounced back from a key support level – Can it recover? Despite the recent recovery that Ethereum has experienced in the second half of March, the price drop last week has now continued the downward trend of this token. For ETH to reverse this trend, the price must rise above the $2,100 level right now.

A positive sign for the buyers is that this token is bouncing off the important support zone between 1,750 and 1,800 dollars. If the RSI breaks above the signal, this will confirm a short-term bullish outlook as the double bottom pattern is emerging. The first target in that case will be set at $2,100, the nearest resistance level for Ethereum, meaning the upside potential is 13%. Identifying and investing in the best cryptocurrencies can be a challenging task, especially when it comes to the meme coin sector.